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Eli Lilly (LLY) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Eli Lilly (LLY - Free Report) closed at $451.20, marking a +0.91% move from the previous day. This change outpaced the S&P 500's 0.71% gain on the day. Elsewhere, the Dow gained 1.06%, while the tech-heavy Nasdaq added 4.62%.

Coming into today, shares of the drugmaker had lost 0.13% in the past month. In that same time, the Medical sector lost 1.53%, while the S&P 500 gained 2.65%.

Wall Street will be looking for positivity from Eli Lilly as it approaches its next earnings report date. This is expected to be August 8, 2023. On that day, Eli Lilly is projected to report earnings of $1.96 per share, which would represent year-over-year growth of 56.8%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.53 billion, up 16% from the year-ago period.

LLY's full-year Zacks Consensus Estimates are calling for earnings of $8.78 per share and revenue of $31.47 billion. These results would represent year-over-year changes of +10.58% and +10.27%, respectively.

Investors should also note any recent changes to analyst estimates for Eli Lilly. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.08% lower. Eli Lilly is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Eli Lilly has a Forward P/E ratio of 50.9 right now. This represents a premium compared to its industry's average Forward P/E of 14.73.

Also, we should mention that LLY has a PEG ratio of 2.05. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Large Cap Pharmaceuticals was holding an average PEG ratio of 1.64 at yesterday's closing price.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 168, putting it in the bottom 34% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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